E15 Waiver Helped Ease Gas Supply Issues

Cindy Zimmerman

This was the year that summer vacation ended early for E15 (15% ethanol fuel) to help offset gasoline supply shortfalls and limit hurricane-related fuel price spikes.

Normally, it would have been this weekend before EPA’s summer restriction on selling E15 in 38 states was lifted, but right after Hurricane Harvey hit, the agency issued emergency fuel waivers allowing the fuel to be sold early, thanks in part to a request by the Renewable Fuels Association (RFA). Since Hurricane Harvey made landfall on Aug. 25, ethanol prices have averaged a 14% discount to gasoline prices (25 cents per gallon).

“Being able to offer E15 to my customers throughout the South, Southeast and Mid-Atlantic these past two weeks has been incredibly helpful as retailers scramble to fulfill demand,” said Steve Walk, vice president of Business Development for Florida-based Protec Fuel, which supplies ethanol blends to more than 200 retailers. “The Gulf Coast region experienced major damage, with refineries that were knocked out slowly coming back online. There continues to be a shortfall of supply, but thanks to EPA’s actions, I have been able to provide E15 to retailers before Sept. 16. That has made a difference in preventing further price increases and ensuring plentiful supply for consumers.”

Beginning Saturday, Sept. 16, consumers in states not covered by the waivers will have unfettered access to E15, thanks to the end of EPA’s summer volatility control season. “While we are glad EPA responded to the requests of RFA to allow early sales of E15, the summer RVP restriction remains as an unnecessary and irrational impediment to rapid expansion of E15 in the marketplace,” said RFA President and CEO Bob Dinneen. “RFA’s top priority continues to be RVP parity, whether that’s through legislative or administrative action…our regulations must be modernized to allow greater access to that asset when it is most needed.”

E15, Ethanol, Ethanol News, RFA

Bioheat Approved for Downstate New York

Cindy Zimmerman

New York Governor Andrew Cuomo signed legislation this week that requires downstate New York counties of Nassau, Suffolk, and Westchester to follow New York City’s lead by blending at least five percent biodiesel (B5) Bioheat® fuel into all home heating oil sold by July 1, 2018. Assemblyman Steve Englebright and Senator Phil Boyle sponsored the legislation, which is supported by a broad range of industry and environmental advocates due to its environmental and public health benefits.

“New York has long been a leader in recognizing the environmental, public health and economic benefits of biodiesel, not only in transportation applications but in the heating oil market as well,” said National Biodiesel Board CEO Donnell Rehagen. “We commend Governor Cuomo for signing this important bill that will provide cleaner air for more New Yorkers by improving emissions from heating oil. Increasing the use of Bioheat® in the nation’s largest heating oil market also supports local jobs in the clean energy sector.”

New York City, the largest municipal consumer of heating oil in the country, instituted a citywide 2 percent biodiesel requirement in 2012 that increases to 5 percent on October 1, 2017. Now the entire New York City Metropolitan Area, representing approximately 70 percent of the state’s heating oil market, will have a 5 percent biodiesel blending requirement.

Biodiesel, Bioheat, NBB

Latest USDA Reports Increase Corn Forecast

Cindy Zimmerman

The September Crop Production report increased both corn and soybean production by about one percent compared to August, but two hurricanes in the past two weeks mean that data is already dated.

Rainfall from Hurricane Harvey caused flooding in parts of southeastern Texas and southwestern Louisiana, impacting data collection activities for the September report, so NASS will collect harvested acreage information in both states for a number of crops in preparation for the October report. Harvested acreage information will be collected from all producers surveyed in Louisiana for corn, Upland cotton, rice, sorghum, soybeans, and sugarcane; and in Texas for corn, Upland cotton, alfalfa hay, other hay, rice, sorghum, and soybeans. Hurricane Irma will impact next month’s reports in Alabama, Florida, Georgia, and South Carolina for Upland cotton, peanuts, and soybeans.

The September World Agricultural Supply and Demand Estimate is forecasting increased corn production, greater feed and residual use, higher ending stocks, and lower prices between $2.80 and $3.60 per bushel. National Corn Growers Association (NCGA) president Wesley Spurlock says this just shows the importance of growing markets for corn “whether it be by protecting the Renewable Fuel Standard in Washington or building demand for higher blends around the country.”

Corn used for ethanol for 2017/18 is projected down 25 million bushels at 5.475 billion, based on observed usage during 2016/17 and expectations of lower exports.

corn, Ethanol, Ethanol News, NCGA, RFS, USDA

10 More E15 Locations in Iowa

Cindy Zimmerman

With the addition of 10 new locations in the past month, 15% ethanol blended fuel is now available at 135 stations across Iowa.

Kwik Star, a retailer based out of Wisconsin, added E15 to seven Iowa stations. Over the course of the next few years, Kwik Trip – which operates in Iowa under the name “Kwik Star” – intends to add E15 to almost all of its 550 locations in Wisconsin, Minnesota, and Iowa.

Iowa-based Kum & Go added E15 to a location in Ames. Kum & Go is actively adding the fuel to all new locations. Motorists can now purchase E15 from 58 Kum & Go stores across Iowa.

The last two locations – Super Mart in Oelwein and Best Food Mart in Des Moines – are independently owned. In addition to E15, Super Mart offers E10 and Best Food Mart offers E85.

“More and more retailers are recognizing that E15 is a lower-cost, higher-performing option that customers want,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “The fuel is now available in more locations than ever before. It is only a matter of time before it is the number one fuel choice for all motorists across the state.”

Click here for list of all new Iowa E15 locations from IRFA.

E15, Ethanol, Ethanol News, Iowa RFA

Democrat Senators Offer Farm Bill Energy Package

Cindy Zimmerman

Senator Al Franken (D-MN), together with Dick Durbin (D-IL) and Tammy Baldwin (D-WI) have introduced the Agricultural Energy Programs Reauthorization Act of 2017, to reauthorize Title IX programs and funding through 2023.

“Each and every day, our nation’s farmers have our backs,” said Sen. Franken, a member of the Senate Energy Committee. “I believe we need to have theirs as well. My measure will support rural jobs, play a critical role in cutting energy costs, and help farmers and producers invest in energy efficiency and renewable energy technologies.”

According to the Agriculture Energy Coalition, the legislation would make renewable chemicals facilities fully eligible to participate in the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program; expand the BioPreferred program and the REAP program; and add new mandatory funding to “create economic and energy opportunities for rural America.”

biofuels, Energy, Ethanol, Ethanol News, farm bill, Government

Ethanol Days of Summer Over

Cindy Zimmerman

Labor Day marked the unofficial end of summer and the official end of the Renewable Fuels Association (RFA) Ethanol Days of Summer Contest.

According to RFA, more than 4,000 new users of E85prices.com registered and helped report prices for higher ethanol blends and conventional fuels during the three-month contest, which offered the chance to win $50 in free fuel per day. In total, there were 98 winners who collectively received $5,000 in free fuel.

“This contest not only helped consumers find higher ethanol blends, but it also highlighted the price discount between ethanol blends and regular unleaded fuel,” said RFA Vice President of Industry Relations Robert White. “For example, users recently reported that nationally on average, E15 had been at a 2.3% discount to unleaded and E85 had been at a 22.1% discount. Through E85prices.com, consumers can also immediately see what stations are their best option by location and historical prices.”

The RFA purchased the crowdsourced E85prices.com in 2014 as a way to bolster consumer engagement in higher blends and enhance data collection capabilities. RFA immediately invested in the website and its mobile app to make the website more user-friendly, but also to include E15. In the future, RFA plans similar efforts to boost the number of users and number of pricing experiences collected.

Contest, Ethanol, Ethanol News, RFA

Biodiesel Helps Clear the Air in Great Smokies

Cindy Zimmerman

The Great Smoky Mountains are so named because of the blue mist that hovers around the peaks and valleys of the range along the Tennessee–North Carolina border. To keep that blue mist from being obscured by smog, the Great Smoky Mountains National Park strives to maintain its natural beauty through practices that reduce the park’s environmental footprint – such as using biodiesel in park vehicles and equipment.

“At Great Smoky Mountains National Park we have implemented a comprehensive strategy to limit our environmental impact and reduce carbon emissions,” said Brian Bergsma, deputy chief of facility management. “Biodiesel and Bioheat® are front and center in that effort.”

In 2016, the park used 43,085 gallons of biodiesel (B20) resulting in the following estimated emissions reductions: 15 percent reduction in carbon dioxide; 12 percent reduction in carbon monoxide; 20 percent reduction in both hydrocarbon and sulfur dioxide and 12 percent reduction in particulate matter.*

In keeping with its history of preservation, Great Smoky Mountains National Park first began using biodiesel blends to power park-owned diesel vehicles and equipment in 2003. The cleaner-burning fuel has been used park-wide since 2006. Today, numerous locations in the park use B20 to power 40 pieces of heavy equipment such as dump trucks, graders, front-end loaders, a bucket truck and more. Additionally, Bioheat® is used to heat the park’s headquarters building.

Learn more from the National Biodiesel Board.

Biodiesel, Bioheat, Environment

Ethanol Industry Calls for U.S. Response to Brazilian Tariff

Cindy Zimmerman

U.S. ethanol producers are asking the government to develop an immediate response to Brazil’s recently implemented tariffs on U.S. ethanol imports

The Renewable Fuels Association, Growth Energy and the U.S. Grains Council are calling on the Trump Administration to “immediately engage their Brazilian counterparts on the future of our relationships with regard to biofuels.”

On August 23, 2017, Brazil’s Chamber of Foreign Trade imposed an immediate two-year tariff-rate quota (TRQ) system for ethanol imports. Under the TRQ, a 20 percent tariff will be applied to purchases from the U.S. after a 600 million-liter (158.5 million gallon) quota is met. This year fuel ethanol exports to Brazil are at 1.17 billion liters (310 million gallons) through July, according to Census Bureau trade data.

The three organizations work jointly and with USDA to develop overseas markets for U.S. ethanol and Brazil is the largest ethanol export market for American producers. “American jobs, farms, and businesses are at risk; this cannot go unanswered,” the groups stressed in a statement Thursday.

biofuels, Brazil, Ethanol, Ethanol News, Exports, Growth Energy, RFA

High-Octane Ethanol Blends Can Help Meet GHG Standards

Cindy Zimmerman

Ethanol organizations presented testimony to the EPA Wednesday that high-octane ethanol blends in optimized engines would be the lowest cost means for the country to meet 2022-2025 fuel economy and greenhouse gas emissions standards. The testimony was provided during a hearing on Reconsideration of the Final Determination of the Midterm Evaluation (MTE) of Greenhouse Gas Emissions Standards for Model Year (MY) 2022-2025 Light-Duty Vehicles.

Renewable Fuels Association President and CEO Bob Dinneen testified that high-octane, low-carbon fuels like ethanol are ideal as the internal combustion engines are expected to continue to serve as the predominant propulsion technology for light duty vehicles through 2025 and beyond. “A high-octane fuel (98-100 RON) could be produced today simply by blending 25-30% ethanol with existing gasoline blendstocks,” Dinneen testified. “Action by the EPA is necessary to catalyze the development and introduction of high-octane, low carbon fuels into the consumer market, just as EPA action was required to eliminate lead, limit benzene, and reduce the sulfur content of our gasoline and diesel fuel.”

American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings provided examples of researchers and automakers supporting the need for increasing the octane rating of fuel. “…We are encouraged by EPA’s reconsideration of the final determination and applaud the Agency for inviting comment on the ‘impact of the standards on advanced fuels technology, including…the potential for high-octane blends,’” Jennings said.

Growth Energy Vice President of Regulatory Affairs Chris Bliley also testified at the hearing. “Any review clearly demonstrates ethanol is a proven high-octane fuel that significantly reduces emissions and, when used in a midlevel blend in conjunction with modern engines, will help automakers achieve future fuel economy standards,” said Bliley.

The EPA has a 45-day public comment period open until Oct. 5, for stakeholders to provide input on EPA’s reconsideration of the January 2017 MTE final determination.

ACE, EPA, Ethanol, Ethanol News, Growth Energy, RFA

Vietnam to Resume Imports of U.S. DDGS

Cindy Zimmerman

The government of Vietnam has notified the U.S. that it will resume imports of American distillers dried grains (DDGS), which were suspended in December 2016 after reported detections of quarantine pests in U.S. shipments, according to USDA.

Prior to the suspension, Vietnam was the third-largest market for U.S. DDGS, with exports valued at more than $230 million in 2016. The resolution of this issue also opens the way for corn and wheat shipments, which were restricted due to previous treatment requirements.

The DDGS ban is one of several agricultural and other priority issues raised in connection with Vietnamese Prime Minister Nguyen Xuan Phuc’s visit to Washington in May 2017, where he met with President Trump as well as Secretary of Agriculture Sonny Perdue and U.S. Trade Representative Robert Lighthizer. Following the series of meetings, the two governments released a joint statement pledging to work closely together to resolve the DDGS issue.

“The suspension of DDGS imports in December 2016 had a dramatic impact on the market, leading to lower DDGS prices and pressuring ethanol margins,” said Renewable Fuels Association vice president Geoff Cooper. “We are confident that DDGS exports will immediately resume to Vietnam, providing poultry and livestock feeders in that country with a high quality, low-cost source of protein and energy.”

According to RFA, exports of DDGS were up 13% in July over June with over a million metric tons (mmt) exported. Mexico remained the top customer for DDGS exports, receiving 20% of the total, and Turkey imported nearly twice the volume it had in June. South Korea, Canada, and Indonesia rounded out the top five markets while shipments to China fell to their lowest level of the year at just 7,325 mt. Total year-to-date DDGS exports stood at 6.54 mmt through July.

Distillers Grains, Ethanol, Ethanol News, Exports